Archive for the ‘Mortgage’ Category

If you are planning to take a home loan, one important step to take would be to hire a mortgage broker. You need the professional advice of a qualified broker to avoid costly mistakes. Finding a reliable mortgage broker NorthYork will help you avoid falling into a financial trap. The agent will disclose to you the following information as regards taking a home loan:

You’ll need the right team in place

When you plan on buying a home, be prepared to gather all the professionals needed to make the process successful. You’ll need to work with an attorney, a home inspector, a realtor and mortgage broker. All these people will come in handy when the process starts up until closing time. It would be better if you started looking for all these professionals early in advance to avoid panic or delays when you find the home you want.

Understand the rules of down payment

Most lending institutions will require the borrower to raise a certain amount of down payment before being given the mortgage. There are rules as to how the down payment can be obtained. Lenders usually allow the borrower to consolidate their own savings; borrowing money to pay down payment is often not allowed. Failing to meet these guidelines can disqualify your mortgage application.

Share all the documents with the mortgage broker

Dealing with a lender directly can result in denied applications and lots of time wasted in filling paperwork. Agents understand all the financial regulations and have filled those papers countless times. They are least likely to be turned back by a lender because the paperwork wasn’t done right or other issues that may arise. Always share all the information with your agent before going to the lender. For instance, if you have credit score problems, be sure to explain that to your them and they’ll will help you to improve it.

Avoid large expenditure

Your mortgage broker is likely to advise you to avoid making huge purchases while you are waiting for the home loan to be approved. Large expenditures can hinder the closing process and sometimes result in denial of the loan. Whether you want to upgrade your home’s furniture, buy a new car or remodel your entire home, these costly expenses can put your home loan at risk. Wait until your home loan is approved before spending money on these costly items.

Avoid making job changes

Lenders usually check your pay stubs when looking to approve your loan application. Most mortgage brokers will advise their clients to avoid taking that new job as it may delay the closing process. Lenders want to be guaranteed that you have job security and if they find any discrepancies, your loan may be at risk. Avoiding changes in your current employment can help to ensure the mortgage is approved without any delays.

There are many other things that your mortgage broker may advice you on based on your unique situation. It is important to maintain close communication with them to ensure the process runs smoothly and you get the financing plan that best suits your needs.